LONDON, Dec 30 (Reuters) - Oil prices were little changed on Tuesday as investors took stock of dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen.
Brent crude futures for February delivery , which expire on Tuesday, were up 15 cents at $62.09 a barrel as of 0918 GMT. The more active March contract was at $61.61, up 12 cents.
U.S. West Texas Intermediate crude gained 14 cents to $58.22.
The Brent and WTI benchmarks settled more than 2% higher in the previous session as Saudi Arabia launched airstrikes against Yemen and after Moscow accused Kyiv of targeting Putin's residence, denting hopes of a peace deal.
Kyiv dismissed Moscow's accusation as baseless and designed to undermine peace negotiations. After a phone call with Putin, U.S. President Donald Trump said he was angered by details of the alleged attack.
"I think the markets are sensing that a deal is going to be very hard to come by," said Marex analyst Ed Meir.
Also adding to supply concerns were strikes by a Saudi Arabia-led coalition on what it described as foreign military support to UAE-backed southern separatists in Yemen.
The coalition has asked UAE forces to leave Yemen as tensions mount between the two Gulf oil powers.
Traders also watched other Middle East developments after Trump said the United States could support another major strike on Iran were Tehran to resume rebuilding its ballistic missile or nuclear weapons programs.
Despite renewed fears of potential supply disruptions, perceptions of an oversupplied global market remain and could cap prices, analysts say.
Marex's Meir said prices would trend downwards in the first quarter of 2026 due to a "growing oil glut".
Reporting by Robert Harvey in London, Anushree Mukherjee in Bengaluru and Sudarshan Varadhan in Singapore; Editing by Jan Harvey
Source: Reuters